Firm A's Business Risk and ROE Variability | CFA Level 1 Exam

Firm A's Business Risk and ROE Variability

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Firm A has a higher operating leverage than firm B. All else equal, firm A has a _______ business risk and a ________ variability of ROE.

A. lower, higher

B. higher, lower

C. higher, higher

D. lower, lower

Click on the arrows to vote for the correct answer

A. B. C. D.

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